Carney is scrapping the luxury tax on yachts and private jets. Here’s how people are reacting

Prime Minister Mark Carney released his government’s first federal budget earlier this week. It includes new tax measures, cuts to public services and major industrial investments that are promised to drive up economic growth, while projecting a $78 billion deficit.

Hidden in the fine print, is a decision to scrap a luxury tax on some yachts and private jets.

The previous Trudeau-era rules levied a tax on the sales, imports and leases of vehicles and aircraft worth more than $100,000 and boats worth more than $250,000. The tax was calculated as the lesser of 10 per cent of the total value of each item and 20 per cent of any value above the threshold.

By dropping the tax, the government is expected to lose $135 million in revenue over the next five years, according to the budget. Despite